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What is a neighbourhood battery?

  • A neighbourhood battery is an electricity storage system. It is also known as a community battery or mid-scale battery.
  • Neighbourhood batteries enable you to generate, store and consume your own renewable energy.
  • Larger than household solar batteries, and smaller than utility scale battery.

Objectives of the 100 Neighbourhood Batteries Program

The Victorian Government is funding these grants to:

  • pass on benefits from local renewable energy and energy storage to consumers. This includes lowering household energy bills
  • increase energy reliability
  • reduce costs of network upgrades
  • support communities to contribute to Victoria’s energy transition
  • scale up the delivery of operational models for neighbourhood-scale batteries.

Benefits of a neighbourhood battery

Neighbourhood batteries can mean:

  • access to renewable energy
  • lower residential power bills
  • the ability to generate revenue
  • a more reliable electricity supply for consumers*
  • a contribution to Victoria’s energy transition
  • a solution for managing energy supply and demand in low voltage networks
  • the ability to store and use renewable energy all year round.

*Reliability in the electricity system means a system delivering electricity with minimal interruptions or failures over a period of time.

Resilience is the network’s ability to continue to adequately provide network services and recover those services when subjected to disruptive events.

A neighbourhood battery when combined with solar panels, a generator and switching equipment, can provide resilience.

The Gembrook Community Centre, showing the energy resilience solutions.
The Gembrook Community Centre - Energy Resilience Solutions back-up system consists of 20kW solar PV, 100kWh battery storage, 45kVA generator and energy controller. Credit: HiVis Pictures.

In front of the meter versus behind the meter

The 100 Neighbourhood Batteries Program funds:

  • ‘in front of the meter’ batteries
  • ‘behind the meter’ batteries
  • hybrid configurations that combine elements of both.

In front of the meter

In front of meter refers to batteries located outside or in front of the utility meter. For neighbourhood batteries this means:

  • they are located outside of homes or properties
  • they are connected directly to the local electricity network
  • the energy stored in them is used to supply the grid or distributed to various customers
  • they can be owned by energy providers, councils or communities.

Behind the meter

Behind the meter refers to batteries located on the customer’s side of the utility meter. For neighbourhood batteries this means:

  • they store and consume energy separately from the grid
  • they are connected to the same meter as other generation or load, such as a rooftop solar system and a building
  • generation, consumption, storage, and management of energy is located on-site
  • they are owned by individual customers, businesses, or third-party service providers.

Alternatives to neighbourhood batteries

There are alternatives to a neighbourhood battery, depending on its purpose. Alternatives that could be cheaper and/or more straight forward, include:

  • improved energy efficiency
  • solar bulk buys
  • household battery bulk buys
  • purchasing GreenPower
  • speaking to your local Distribution Network Service Provider about solutions to network issues.

Current funded 100 Neighbourhood Batteries projects

A neighbourhood battery in Tarneit

Funding (of up to $300,000 per battery) for project(s) that:

  • implement one or more neighbourhood battery(s) (including installation and commissioning)
  • demonstrate quantified benefits for both the electricity network and local electricity consumers
  • include a minimum 30% cash co-contribution
  • each battery must be a chemical battery of a minimum size 25 kW/ 50 kWh and maximum 5M W/ 10 MWh
  • will complete project delivery by 1 August 2025.

Project name

AusNet’s 10 LV Pole-Mounted Batteries

Lead applicant

AusNet

No. batteries

10

Location/s

  • Coldstream
  • Diamond Creek
  • Ferntree Gully
  • Heathmont
  • Knoxfield
  • Lysterfield
  • Smiths Beach
  • Traralgon
  • Wantirna
  • Wantirna South

Project summary

AusNet will install 10 low voltage (LV) pole-mounted batteries across their distribution network, which includes Melbourne metropolitan and regional areas. Batteries will be deployed as an alternative solution to traditional network augmentation, delivering both customer and network benefits.

Status

In progress

  • Funding (of up to $300,000 per battery) for project(s) that:
  • implement one or more neighbourhood battery(s) (including installation and commissioning)
  • demonstrate quantified benefits for local electricity consumers
  • include a minimum 10% cash co-contribution
  • each battery must be a chemical battery of a minimum size 50 kW/ 100 kWh and maximum 5 MW/ 10 MWh
  • will complete project delivery by 1 August 2025.
  • Project name

    Phillip Island Neighbourhood Batteries

    Lead applicant

    Mondo Power

    No. batteries

    7

    Location/s

    Phillip Island

    Project summary

    Mondo Power will deploy 7 neighbourhood batteries on Phillip Island. Once commissioned, a portion of the batteries’ operating income will be allocated annually to community-focused initiatives in collaboration with Bass Coast Shire and community group Totally Renewable Phillip Island (TRPI).

    Status

    In progress

    Project name

    Queenscliff Neighbourhood Batteries

    Lead applicant

    Mondo Power

    No. batteries

    4

    Location/s

    Queenscliff

    Project summary

    Mondo Power will deliver 4 neighbourhood batteries on council-managed land in the Borough of Queenscliffe. Once commissioned, the batteries will be owned and operated by Mondo Power. All sites will enable higher levels of rooftop solar penetration and each system is expected to deliver community benefits tailored to that location.

    Status

    In progress

    Project name

    Wodonga Neighbourhood Battery

    Lead applicant

    Indigo Power

    Project partner

    North East Region Water Corporation

    No. batteries

    1

    Location/s

    Baranduda

    Project summary

    Indigo Power will install a neighbourhood battery at a water treatment plant in Baranduda within the City of Wodonga. The system will be connected to the electricity grid ‘behind-the-meter’ through an existing high-capacity connection point, so the battery will operate as an effective solar soak.

    Status

    In progress

    Project name

    Yack02 – Powered and Empowered

    Lead applicant

    Totally Renewable Yackandandah (TRY)

    Project Partner

    Indigo Power

    No. batteries

    1

    Location/s

    Yackandandah

    Project summary

    With Indigo Shire Council and the volunteer committee, Totally Renewable Yackandandah will install a neighbourhood battery at the Yackandandah Sports Park. This installation aims to boost the proportion of ‘low carbon’ power in the network each evening, reduce power bills, and support increased solar generation. Critically, the battery will also be able to power site backup loads during outages or emergencies.

    Status

    In progress

    Project name

    GVCE – Resilient Community Organisations

    Lead applicant

    GV Community Energy (GVCE)

    Project Partner

    Future NRG

    Moyola Aged Care

    Merriwa Industries

    No. batteries

    2

    Location/s

    • Tatura
    • Wangaratta

    Project summary

    GVCE will deliver 2 neighbourhood batteries

Page last updated: 09/09/24